What does the new budget mean for pensions?
Monday 16th of March 2020.
State pensions
The new single-tier State Pension will increase from £168.60 a week to £175.20 in April 2020. For pensioners receiving the older basic State Pension, this will increase from £129.20 to £134.25 per week (3.9% increase). For spouses/civil partners this will increase to £80.45 per week.
The rise is the result of the triple-lock system, which means that the State Pension rises in line with inflation, earnings or 2.5%, whichever is the highest.
Private pensions
To support the delivery of public services, particularly in the NHS, the two tapered Annual Allowance thresholds for pensions will each be raised by £90,000. So, from 2020-21 the threshold income will be £200,000, meaning individuals with income below this will not be affected by the tapered Annual Allowance. The Annual Allowance will only begin to taper down for individuals who have an adjusted income above £240,000 (the £200,000 allowance plus the £40,000 you can save into your pension). For every £2 of adjusted income over £200,000, the annual allowance will reduce by £1.
For individuals with income over £300,000 the minimum level to which the Annual Allowance can taper down will reduce from £10,000 to £4,000 from April 2020.
The Lifetime Allowance for pensions will increase in line with the Consumer Prices Index (CPI) for 2020-21, rising to £1,073,100.
Annual allowance charge on excess is at applicable tax rate(s) on earnings
Lifetime allowance charge if excess if drawn as cash 55%; as income 25%
Pension commencement lump sum up to 25% of pension benefit value
If you would like to know more about how pension allowances may impact your retirement planning please get in touch.
HM Revenue and customs practice and the law relating to taxation are complex and subject to individual circumstances and changes that cannot be foreseen.
Archive
-
2024
-
2023
-
December
-
November
-
October
-
September
-
August
-
July
-
June
-
January
-
-
2022
-
2021
-
November
-
October
-
September
-
August
-
July
-
June
-
May
-
April
-
March
-
February
-
January
-
-
2020
-
December
-
November
-
October
-
September
-
August
-
July
-
June
-
May
-
April
- Omnis Market Update 27 April 2020
- Omnis Market Update 20 April 2020
- Omnis Market Update 14 April 2020
- Omnis Investment Update: A Bumpy Road Can Still Lead Somewhere
- Omnis Market Update 6 April
- General Mortgage Information and FAQ's during Covid-19 Crisis
- Important Information regarding Buy To Let's during Covid-19 crisis
-
March
- Daily Investor Update 30 March 2020
- Market Update: Shares rally as US launches emergency measures.
- Investment Update: Impact of changes to debt rating
- Investment Update: The Outlook Is Improving
- Financial Support for businesses and employees
- Market Update: Turbulent week for markets as coronavirus continues to spread West
- Omnis Investment Update: Focus on the Horizon
- Coming to terms with market turbulence
- Government announces three-month mortgage holiday in Covid-19 package
- Market Update: Global shares fall as spread of coronavirus rattles markets
- Omnis Investment Update - US travel ban weighs on European shares
- What does the new budget mean for pensions?
- Spring Budget 2020
- Market Update: Coronavirus concerns continue to hover over markets
- Investment Update: Falling oil prices drag down shares
- Coronavirus Dents Recovery Hopes
- Market Update: Coronavirus: Shares fall as investors switch to bonds.
-
February
- FACED WITH THE THREAT OF THE CORONAVIRUS, INVESTORS HAVE ENGAGED IN A ‘FLIGHT TO SAFETY
- New Cases of coronavirus weigh on shares
- Market Update: New cases of coronavirus weigh on shares
- Market Update: Markets remain sensitive to coronavirus developments
- Market Update: Global shares recover as China responds to coronavirus
- Market Update: Concerns about coronavirus continue to hover over markets
-
January
-
-
2019
-
December
-
November
-
October
-
September
-
August
-
July
-
June
-
May
-
April
-
March
-
February
-
January
-
-
2018
-
December
-
November
-
October
- Key points from the Autumn Budget
- Market update: Brexit uncertainty returns as US equities stem losses
- Market update: Equity markets sell of as investors worry about interest rates
- Market correction should be no cause for alarm
- Market update: Fed forecasts further monetary tightening as Italian coalition outlines budget
-
September
-
August
-
July
-
June
- Market update: German business and consumer confidence in spotlight
- Market update: Decision time on UK interest rates as banker forum kicks off in Portugal
- Market update: Key week for Brexit as MPs vote on EU withdrawal bill
- Market update: Investors look to US trade health ahead of next week's Fed meeting
-
May
-
April
-
Please note: by clicking this link you will be moving to a new website. We give no endorsement and accept no responsibility for the accuracy or content of any sites linked to from this site.